Content overview
1  Understanding business activity
This section introduces the underlying ideas and concepts of business and includes the purpose and nature of
business activity and how businesses can be classified. Enterprise and entrepreneurs, and why some businesses
grow while others remain small are further important issues. How business size can be measured, types of
business organisation, business objectives and stakeholder objectives are the concluding topics.
2  People in business
The focus is the functional area of human resources and includes the importance and methods of motivating a
workforce. How businesses are organised and managed and the methods of recruitment, selection and training
of employees are also considered. Finally, the section covers the importance and methods of effective internal
and external communication.
3  Marketing
This section includes the role of marketing, the distinctions between niche and mass markets and the
techniques of market segmentation. The methods and importance of market research are covered. The central
role of the marketing mix, i.e. the four Ps, is made clear. Marketing strategies to influence consumer decisions
at home and in new foreign markets are the final topics in this section.
4  Operations management
The focus is the functional area of production and includes the meaning and methods of production and how
productivity can be increased. The different costs of production and break-even analysis are covered. The
section concludes with the importance and methods of achieving quality in the production process and location
decisions of businesses.
5  Financial information and decisions
This finance and accounting section covers the need for and sources of business finance, cash-flow forecasting
and working capital. Simple income statements are covered as well as statements of financial position and the
analysis of accounts including why and how accounts are used.
6  External influences on business activity
This section focuses on different external influences on business activity and how these impact on a business.
It includes government influences on economic, environmental and ethical issues and how they impact on
the functional areas of businesses. In addition, the international economy including globalisation and its
effects on businesses and governments, multinational businesses and exchange rates are important issues.
Legal constraints are an external influence to be considered but these influences are covered in the relevant
functional areas above, as well as in this last section.